{"id":3241,"date":"2011-11-14T14:28:18","date_gmt":"2011-11-14T19:28:18","guid":{"rendered":"http:\/\/stateimpact.npr.org\/new-hampshire\/?p=3241"},"modified":"2012-02-13T15:41:30","modified_gmt":"2012-02-13T20:41:30","slug":"qa-explaining-dartmouth%e2%80%99s-relatively-low-student-debt-load","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/new-hampshire\/2011\/11\/14\/qa-explaining-dartmouth%e2%80%99s-relatively-low-student-debt-load\/","title":{"rendered":"Q&A: Explaining Dartmouth\u2019s (Relatively) Low Student Debt Load"},"content":{"rendered":"
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Jacob Anikulapo \/ Flickr<\/p>

Student debt is a growing concern across the country...but it's recent New Hampshire alumni who are carrying the heaviest loan burden on average<\/p><\/div>\n

New Hampshire alumni lead the pack when it comes to average student debt, according to a report<\/a> from the Project on Student Debt<\/a>. Nationally, the average Class of 2010 student graduated with $25,250 in loans, while New Hampshire alumni carried student debt loads of \u00a0$31,048, on average.<\/p>\n

So why does student debt matter for the state\u2019s economy? \u00a0At the risk of over-simplifying economic theory, if recent graduates are saddled with high debt levels, there are some things they might not be able to afford to do. For example, big purchases, like cars, could be out of the question. Increasingly, all over the country, more young people are living at home after graduation<\/a>. Also, as several economists have explained to us, people dealing with deep debt in general have a hard time saving money. When that happens on a large scale, the economy becomes more unstable.<\/p>\n

And, of course, there\u2019s the \u201cNew Hampshire Advantage.\u201d \u00a0For years now, one of the state\u2019s main selling points has been the fact that it\u2019s got a large pool of highly educated workers. \u00a0But as the cost of higher education increases, and young people are forced to forgo higher education or move out of state for cheaper options, the \u201cadvantage\u201d could disappear<\/a>.<\/p>\n

So student debt in New Hampshire is high, but there are disparities within the state. University of New Hampshire<\/a> students attending the Durham campus graduated with the highest debt \u2014 an average of $32,323, Dartmouth<\/a> grads only carried less than $19,000 in loans.<\/p>\n

At the risk of mixing metaphors, what you\u2019ll often hear is, \u201cThat\u2019s an apples and oranges comparison.\u201d Private and public institutions are two very different animals.<\/p>\n

But even with that in mind, the Dartmouth figure still seems rather low. \u00a0In order to get behind relatively low student debt figure, we recently spoke with Maria Laskaris, the Dean of Admissions and Financial Aid at Dartmouth College.<\/p>\n

Q: <\/span>Why is it that you think that the amount of debt your students are taking on is so much less than just about any other school in NH?<\/p>\n

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Dartmouth College<\/p>

Dean of Admissions and Financial Aid Maria Laskaris helps StateImpact to understand why Dartmouth's student debt numbers are so low<\/p><\/div>\n

A: <\/span>Dartmouth is committed to meeting the full demonstrated need of all of its students \u00a0through our strong, need-based financial program. \u00a0Let me unpack that a little bit…Just to\u2026to determine the family, or student, need, we start with the total cost of attendance. \u00a0And for Dartmouth this year, that\u2019s roughly $55,000…Students fill out the [financial aid] profile, we collect tax return information, we take a look at student and family income and assets, number in college…unusual expenses. \u00a0And from that, we determine an amount that we believe a family can reasonably contribute to a Dartmouth education. \u00a0So then, there\u2019s usually a gap for financial aid students, between the cost of attendance, and what we think the family can contribute. \u00a0And that gap is usually pretty large. \u00a0And what we do at Dartmouth is we cover 100% of that gap with our financial aid award. \u00a0Now some schools do what\u2019s known as \u201cgapping,\u201d which is they meet part of that difference, but not all of that difference. \u00a0And they basically leave it up to the students to figure out how they\u2019re going to come up with the rest of the money…Our awards at Dartmouth are comprised of two parts. \u00a0The first is what we call \u201cSelf Help,\u201d and the second is scholarship. \u00a0\u00a0So self-help has two pieces. \u00a0One is…a work study job. \u00a0Usually 10-12 hours a week. \u00a0The second is a loan… And at Dartmouth, we\u2019ve always tried to keep self help at a reasonable level.<\/p>\n

We\u2019ve [also] done a couple more things I think is important to mention as well. \u00a0For students from families where the income is below $75,000, they do not receive any loans at all in their financial aid package. \u00a0So their financial aid award is the work study job and then the rest of the award is all scholarship. \u00a0For students whose family income are above $75,000, there is a modest amount of loan each year, that\u2019s part of the financial aid award, ranging from $2,500 to $5,500, depending on income. \u00a0And that\u2019s per year…The average scholarship for incoming class this year is about $38,000. \u00a0So it gives you the sense of that $55,000 cost.<\/p>\n

Q: <\/span>In terms of your ability to fund these kids is, how much do you have set aside for financial aid?<\/p>\n

A: <\/span>We anticipate in this academic year, we\u2019ll be spending upwards of $77 million in scholarships that we will award to our students. \u00a0So this is all based on need, so there are not athletic or academic or merit scholarships of any type, but this is all need-based scholarships that we award.<\/p>\n

Q: <\/span>Is that up or down or flat from last year?<\/p>\n

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